Recent times have seen increasingly stringent regulatory requirements come into play, which are transforming the way financial firms interact with and manage data. Regulations such as the revised Markets in Financial Instruments Directive are increasing the scope of regulatory reporting, while the Fundamental Review of the Trading Book (FRTB) requires firms to manage at least 10 years of historical prices and associated metadata to comply. This means they need to strategically plan for and consistently manage data flows with a reliable monitoring system based on a single, centralized source of data. Fortunately, NeoXam has a service that will help, which earns it this year’s Most Innovative Regulatory Solution award.
“When FRTB is implemented, a vast amount of market data is going to be required on a daily basis. Not only is the consolidation of this important, but market data costs could soon spiral out of hand if there isn’t an optimized process in place,” says Yann Bloch, vice president of product management at NeoXam.
NeoXam DataHub is made up of a set of functional modules that provide clients with a single manageable source of data. It can be deployed in several ways: from enterprise on-premise to cloud-hosted to a managed service—which takes the low-level system and application management burden off customers and allows them to focus on value-added business operations. “DataHub also provides regulatory reporting services on an industrial scale and ensures clients are constantly kept up to date with the latest regulatory requirements via our round-the-clock regulation watch,” Bloch says.
Last year, Münchener Hypothekenbank went live with NeoXam DataHub to house all its data and administration in a single platform to help it address upcoming regulatory requirements. By using DataHub, the bank is able to automatically process all the data it uses and reduce the level of operational risk by providing a clear audit trail and improved data quality.
NeoXam also recently launched Regulatory Edition, a feature of its new reporting solution, NeoXam Impress. The firm is also pursuing a machine learning initiative after receiving a Finance Innovation Accreditation from the French public authorities. To achieve this, NeoXam worked with consultants to discover the most critical issue for their clients. For asset managers, this was data quality. Having to consolidate large amounts of data from different data providers was causing some issues when it came to data classification. “Artificial intelligence, and machine learning in particular, can help identify data quality issues by recognizing unusual patterns in time-series data, for example,” Bloch says.
This year, Bloch says NeoXam will be further developing the cloud integration aspect of its data management services in response to an overwhelming trend towards cloud migration among its clients.
The founder and CEO of Imperative Execution looks at how trade execution is changing and what that means for the buy side.Subscribe to Weekly Wrap emails